Executive summary of The New Gold Standard - Customer ...

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Extract of Ritz-Carltons Service Values • I build strong relationships and create RC guests for life • I own and immediately resolve guest problems • I create a work environment of teamwork and lateral service so that needs of our guests and each other are met • I have the opportunity to learn and grow • I am proud of my professional appearance, language, and behavior While most businesses go through the exercise of defining values and mission statements, very few understand the importance of regular and repetitive presentation of these core concepts. Beyond the creation and dissemination of pocket cards, daily conversations, conducted in so-called "line-ups", further embrace the gold standards (Repetition of values, common language, oral tradition, positive story telling etc). Be relevant As important as it is to establish a framework of values to guide an organization's culture, it is equally crucial to re-evaluate mission statements and ensure they are relevant to the evolving needs of customers. Companies often cling to their traditional customer segments without demonstrating the courage to evolve with changing customer trends. Managers’ antennae should be trained to register changing market conditions by studying customer feedback, sales force intelligence, monitoring word of mouth etc. The constant struggle faced by companies attempting to apply the define and refine principle is knowing when something needs to be defined as an unchangeable brand standard, and when something can be modified to reflect (local) relevance. Key take-aways - Distil mission statement into a set of short, memorable, and operational phrases. - Regularly discuss the mission with staff and incorporate feedback to ensure the mission is realized. - If asked, could everyone in the business provide a clear understanding of the company's mission and purpose? These are often not understood or remembered in a functional way throughout the organization. - What are the most basic aspects of service you wish to consistently see delivered? - How simply have you presented the expectations of your service standards? - Daily "line-ups" increase the consistency and frequency of messages of corporate mission and values. - Are you willing to take the time to regularly define the link between operational and cultural aspects of the business? - What are the visual symbols, oral traditions and positive stories in the business? - You can never overcommunicate your values! - All staff should be alerted to the importance of customer experience and of their own performance towards delivering it. - What aspects of your service are essential to your brand identity? Which components can be changed to address diversity of customers? - Do you challenge individuals throughout the company to share ideas that will keep your business relevant and sustainable? - No company can be all things to all people, but it is possible to be all things to your customers. - Delivering on customers' expressed and unexpressed wishes create clients for life. Stimmt AG | Executive summary of The New Gold Standard 2
1.2 Principle #2 - Empower though trust Select, don't hire Because of RC's steadfast commitment to and passion for selection, training and empowerment, staff at RC consistently generate extraordinary customer experiences. In order for staff to continually and subtly act in ways that not only satisfy but delight customers, leaders must understand the importance of identifying talent and developing methods to select top candidates. Attracting the best by having an overly generous compensation plan is the wrong response to the "talent war". RC has addressed this key issue by espousing a long-standing commitment to assess the strengths of a prospective candidate through a comprehensive process that involves multiple interviews and identifying the right qualities and requirements for each position. Only individuals who take pride in providing service are selected. Simply hiring somebody is nothing more than finding somebody to fill a vacancy. While many business leaders understand the value of a patient, methodological selection process, they often take shortcuts and compromise their sound business platforms. In essence, they succumb to the pressure of "we need bodies now". But you cannot microwave a RC. By choosing the right people in the first place, turnover at RC is about 20% compared to the industry standard of 60%. Once the costly journey of recruitment and selection are completed, many businesses fail to appreciate the critically important opportunity they are provided during orientation of new employees. In many companies, orientation is seen as necessary evil, often conducted only to fulfil legal requirements and provide an overview of the employee handbook. The RC orientation is all about fully understanding and committing to the culture of service. They don't rush you through that. In support of grounding new hires deeply and immediately in mission, vision and values, new staff members cannot start employment until they have completed the orientation process. Additionally, every employee is certified in his first 21 days, making sure that they completely aligned with RC’s Gold Standards. While formal training programs are in place, more informal and relationship-based development opportunities are encouraged. A key stage of successfully developing talent in an organisation is investing time in the mentoring process. To that end, personal growth and development are not only built into the employee review process but they are also required of the management team. While it may be a somewhat unique necessity in the hotel industry, lateral service is strongly encouraged. It is expected that everyone will pitch in to do what is necessary to get a job done, whether or not it is linked directly to an individual job description. Guests are not just served better through lateral service. Cross-training naturally occurs, departments become less isolated form one another and staff members gain a great empathy for the function of those in other areas. 90% of staff tend to make the decision to stay or leave within the first 6 months of employment. With a firm understanding of the speed with which employees can become disillusioned or disengaged from their work, RC has established "Day 21". On the 21st day on the job, staff members are given a forum to freely discuss the positives and negatives they have encountered in their first three weeks. All issues and concerns are collected to get these addressed. Management then make sure that they get back to the person so that they know how their issue was resolved. It is important not just to listen, but also to make sure employees are appraised for the outcome. Stimmt AG | Executive summary of The New Gold Standard 3
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